Calculate basic and diluted earnings per common share

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Reference no: EM131292042

At January 1, 2016, Canaday Corporation had outstanding the following securities: 610 million common shares 25 million 6% cumulative preferred shares, $50 par 8% convertible bonds, $2,500 million face amount, convertible into 60 million common shares The following additional information is available: • On September 1, 2016, Canaday sold 72 million additional shares of common stock. • Incentive stock options to purchase 50 million shares of common stock after July 1, 2015, at $10 per share were outstanding at the beginning and end of 2016. The average market price of Canaday’s common stock was $20 per share during 2016. • Canaday's net income for the year ended December 31, 2016, was $1,480 million. The effective income tax rate was 40%.

Calculate basic and diluted earnings per common share for the year ended December 31, 2016. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Reference no: EM131292042

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